The history of India's freedom struggle is interwoven with the Charkha the unusual weapon,

employed by Mahatma Gandhi to spread the message of Swadeshi. Gandhi gave the art of
Khadi, a special status through this movement.
Khadi
Simply means cotton, usually handspun. Khadi's earliest avatar was fashioned some 5,000 years
ago in India, the original home of cotton, hand spun and hand woven by crafts persons who in all
likelihood followed the precise instructions on weaving, spinning and dyeing laid out in the
Vedas. The Mahabharata and Ramayana rhapsodize over the intricacies of gold shot woven cloth
PROMOTIONAL STRATEGIES USED FOR KHADI
1.We market Khadi by participating in trade exhibitions. As it was done last year
in places which were Italy, Britain, Switzerland, France and Poland which was organized by
International Trade promotion Offer(ITPO). So as to promote Khadi in such Well reputed fairs.
2.We market Khadi by giving export incentives. We give 5%incentive on FOB given to
those industries who export directly. The industries need to submit paper and other documentary
evidence
3.Buyer and seller And buyers and dealers are various such meets that can be attended
4.Using a global web strategy is one of the best ways to initiate or extend export activities used
to be to exhibit at an overseas trade show. with the web , it is not even necessary top attend trade
shows to show ones wares with the helps of electronic communication i.e. via internet.

The government is planning to set up a marketing organization under public-private-partnership

mode for promoting Khadi products, Parliament was informed today.
"Under Khadi Reform and Development Programme (KRDP), a marketing organization under
Public-Private-Partnership (PPP) mode is envisaged to promote effective marketing of KVI
products," Minister of State for Micro, Small and Medium Enterprises (MSME) K H Muniappa
said in a written reply to the Lok Sabha.

At present, the Khadi and Village Industries Commission (KVIC) operates 10 departmental sales
outlets and organizes exhibitions in different parts of the country at district, state, regional and
national levels in association with state agencies.
KVIC also provides assistance to its departmental outlets, outlets of Khadi and Village Industries
Boards (KVIBs) of states and Union territories, and institutions under the Scheme of
Strengthening Infrastructure of Existing Weak Khadi Institutions.
Besides, KVIC imparts training on various KVI trades and entrepreneurship through a network
of 17 departmental and 24 non-departmental training centers.

The Ministry of Micro Small and Medium Enterprises (MSME) have been implementing various
schemes/programmes for the development of khadi through Khadi and Village Industries
Commission (KVIC). There has been significant growth in the production, sales and employment
during preceding years. The production and sales of khadi during last three years are:

The main items exported under Khadi are Silk & Muslin, Ready Made Garments, Textile Based
Handicraft and Charkha. The product-wise and country-wise export of khadi products during last
three
years
is:

The Government, in order to boost export of khadi products, has given deemed Export
Promotion Council status to KVIC under which KVIC has already enlisted more than 900
exporters. There is a provision of providing incentive in the form of 5% FOB value of direct
export of khadi products. Besides, KVIC has also been focusing on quality participation in
International Exhibitions and Buyer-Seller Meets abroad to tap new/emerging markets for khadi
products.
This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri
Giriraj Singh in a written reply to a question in Rajya Sabha here today.
The Khadi & Village Industries Schemes are the backbone of the Rural India's Economy. Khadi
was evolved as a concept during India's struggle for freedom against the colonial British Raj.
This signified concept of Swadeshi, the popular slogan of the freedom struggle in the early 20th
Century, and in concrete term was an assertion of Indian capability to manufacture their own

cloth in contrast to the imported fabric coming from Manchester and Lancashire that had
initially provided incentives to the British Thrust in India in the aftermath of industrial
revolution. Naturally in the pre independence era, the scheme was implemented by the NGOs.

After independence even though the cause of the concept was no

more in existence, the Govt. felt the need to provide rural artisans
with requisite support organisation in order to help them to flourish.
In 1957 a statutory body the Khadi Village Industries Commission
was established with the objective to plan, program, and promote
Khadi & Village Industries. At the level of the State, it was decided to
have a State Khadi & Village Industries Boards. All State Khadi &
Village Industries Board in the country are financed by the KVIC to implement the schemes in
their states in accordance with their norms and guidelines and keeping in view the local
conditions.

Organisational Setup

The M/o MSME is having two Divisions called Small & Medium Enterprises (SME) Division
and Agro & Rural Industry (ARI) Division. The SME Division is allocated the work, inter- alia,
of administration, vigilance and administrative supervision of the National Small Industries
Corporation (NSIC) Ltd., a public sector enterprise and the three autonomous national level
entrepreneurship development/training originations. The Division is also responsible for
implementation of the schemes relating to Performance and Credit Rating and Assistance to
Training Institution, among others. SME Division is also responsible for preparation and
monitoring of Results- Framework Document (RFD) as introduced in 2009 by the Cabinet
Secretariat under Performance Monitoring and Evaluation System (PMES). The ARI Division
looks after the administration of two statutory bodies viz. the Khadi and Village Industries
Commission (KVIC), Coir Board and a newly created organization called Mahatma Gandhi
Institute for Rural Industrialization (MGIRI). It also supervises the implementation of the Prime
Minister's
Employment
Generation
Programme
(PMEGP).
The Implementation of policies and various programmes schemes for providing infrastructure
and support services to MSME's is undertaken through its attached office, namely the Office of

the Development Commissioner (010 DC (MSME)), National Small Industries Corporation

(NSIC), Khadi and Village Industries Commission (KVIC); the Coir Board, and three training
institutes viz., National Institute for Entrepreneurship and Small Business Development
(NIESBUD), NOIDA, National Institute for Micro, Small and Medium Enterprises (NI-MSME),
Hyderabad, Indian Institute of Entrepreneurship (lIE), Guwahati and Mahatma Gandhi Institute
for Rural Industrialization (MGIRI), Wardha a society registered under Societies Registration
Act,
1860.
The National Board for Micro, Small and Medium Enterprises (NBMSME) was established by
the Government under the Micro, Small and Medium Enterprises Development Act, 2006 and
Rules made there under. It examines the factors affecting promotion and development of MSME,
reviews existing policies and programmes and make recommendations to the Government in
formulating the policies and programmes for the growth of MSME.

Office of the Development Commissioner [MSME]

The Micro, Small and Medium Enterprises- Development Organisation (MSME-DO) is headed
by the Additional Secretary & Development Commissioner (MSME). The Office of the
Development Commissioner (Micro, Small & Medium Enterprises) assists the Ministry in
formulating, co-ordinating, implementing and monitoring different policies and programmes for
the promotion and development of MSMEs in the country. In addition, it provides a
comprehensive range of common facilities, technology support services, marketing assistance,
etc. through its network of 30 Micro, Small and Medium Enterprises-Development Institutes
(MSME-Dls); 28 Branch MSME-Dls; 4 MSME Testing Centres (MSME-TCs); 7 MSME-Testing
Stations (MSME-TSs); 2 MSME-Training Institutes (MSME-Tls); and 1 MSME-Technology
Development Center-Hand Tools (MSME-TDC-Hand Tools). The % DC (MSME) also operates
a network of Tool Rooms and Technology Development Centres (including 2 Footwear Training
Institutes) which are autonomous bodies registered as Societies under the Societies Act. The
Office implements a number of schemes for the MSME sector, the details of which have been
duly incorporated in the booklet.

Khadi & Village Industries Commission

The Khadi & Village Industries Commission (KVIC), established under the Khadi and Village
Industries Commission Act, 1956 (61 of 1956), is a statutory organization engaged in promoting
and developing khadi and village industries for providing employment opportunities in rural
areas, thereby strengthening the rural economy. The Commission is headed by full time
Chairman and consists of 10 part-time Members. The KVIC has been identified as one of the

major organizations in the decentralized sector for generating sustainable rural non-farm
employment opportunities at a low per capita investment. This also helps in checking migration
of rural population to urban areas in search of the employment opportunities. The main functions
of the KVIC are to plan, promote, organize and assist in implementation of the
programmes/projects/schemes for generation of employment opportunities through development
of khadi and village industries. Towards this end, it undertakes activities like skill improvement,
transfer of technology, research & development, marketing, etc. KVIC co-ordinates its activities
through State KVI boards, registered societies and cooperatives. It has under its aegis a large
number of industry-specific institutions spread in various parts of the country.

VIC implements many schemes for promotion of khadi

August 01, 2014 (India)
For the holistic development and promotion of khadi and village industries in the country, the
Government of India has established a statutory body named the Khadi and Village Industries
Commission. KVIC implements a number of schemes for development, promotion & growth of
khadi which includes:
(i) Market Development Assistance (MDA) under which assistance is provided @ 20% of value
of production khadi and polyvastra to be shared among artisans, producing institutions and

selling institutions in the ratio 25:30:45.

(ii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) under which assistance
for replacement of obsolete equipments, setting up common facilities centres, product
development, market promotion and other support are provided in clusters.
(iii) Scheme for Enhancing Productivity & Competitiveness of Khadi Industry and Artisans
under which assistance for replacement of charka, product development, design intervention and
packaging etc. is provided.
(iv) Interest Subsidy Eligibility Certification (ISEC) scheme for providing bank loans for khadi
and polyvastra at subsidized rates of interest.
(v) Strengthening Infrastructure of existing Weak Khadi Institutions and Assistance for
Marketing Infrastructure envisaging renovation of khadi sales outlets and providing assistance
for strengthening infrastructure of existing weak selected institution.
KVIC with assistance of US$ 150 million from Asian Development Bank (ADB) also
implements a comprehensive reform package for the khadi sector namely Khadi Reform and
Development Programme (KRDP), which includes capacity building of 300 khadi institutions
and incentivizing production. Khadi Mark has also been introduced to guarantee the
genuineness and purity of khadi sold in the market. Formation of new khadi institutions are also
promoted by KVIC.
The Government, in order to boost export of KVI products, has given deemed Export
Promotion Council status to KVIC under which KVIC has already enlisted more than 900
exporters. There is a provision of providing incentive in the form of 5% FOB value of direct
export of KVI products. Besides, KVIC has also been focusing on quality participation in
International Exhibitions and Buyer-Seller Meets abroad to tap new/emerging markets for KVI
products.
Rural enterprises play a pivotal role in the overall industrial development of the country and the
development of rural industries is primarily the responsibility of State Governments.
NARENDER MODI KHADI CONTRIBUTION
Magsaysay award winner social activist Dr Prakash Amtes Sunday visit to Pune may have been
a brief one but not without a 10-minute stop at Janata Khadi Bhandar on Laxmi Road from
where he picked up three khadi kurtas. Like Amte, who is always seen in khadi clothes, there are
many cine actors, politicians and theatre artistes who swear by the purity of the fabric. However,
khadis popularity with celebrities had not reached youngsters in the country, many believed. But
when Prime Minister Narendra Modi appealed to the young India to buy and promote khadi
during the Gandhi Jayanti week, outlets across metros, and also in Pune, saw a jump in the sales

as against last year. Some people even came to purchase a handkerchief made of khadi, says
Shriniwas Jannu, one of the owners of Janata Khadi Bhandar, which is perhaps the oldest shop in
the city set up in 1946 that responded to Mahatma Gandhis call of adopting Swadeshi
clothes. After Morarji Desai who was always attired in Khadi, it is Narendra Modi who has now
called for a revival of khadi, says Shyam Jannu, the 70-year-old proprietor of the Janata Khadi
Bhandar. In just one and a half months, we have sold Khadi clothes worth Rs 20 lakh at least
a 30 per cent rise since last year, he adds. While khadi is promoted every year to mark October
2, Mahatma Gandhis birthday, the sale continues till Nehru Jayanti on November 14. This year,
especially after Narendra Modi gave a call for promoting khadi, the government outlets run by
Khadi and Village Industries Commission (KVIC) have also showed a rise in sales.
Vandana Dhamdkar, manager at Pune District Khadigram Udyog Sahkar, said this season they
registered daily sales of approximately Rs 50,000. At KVIC headquarters in Mumbai, officials
are excited that despite not placing advertisements there has been a substantial rise in the sales
after Modis appeal. In Mumbai, 138 stalls at KVIC HQ made a daily sale of Rs 7- 8 lakh this
year. Last year, the sale had averaged Rs 2-3 lakhs, said Rajan Babu, Director, Marketing,
KVIC. According to initial reports, within 10 days of Modis call, the Khadi Bhandar at
Connaught Place in New Delhi started registering daily sales of around Rs 50 lakh while there
has been a definite rise across 7,000 outlets across the country, he added. Yashwant
Baramatikar, Maharashtra Director of KVIC, said awareness programmes promoting khadi
among youngsters had been launched. M T Wakode, Director of State Village Industries
Development at KVIC, said scheme for enhancing productivity and competitiveness of the khadi
industry had been undertaken by it by opting for the market development assistance (MDA)
programme instead of the earlier rebate system (where discounts were directly offered to
customers).
Khadi artisans will now benefit under the MDA scheme, he said. In 2012-13, there were
21,119 khadi artisans. The production of khadi was to the tune of Rs 761.93 crore and
employment was generated for at least 10.71 lakh people who earned Rs 459.18 crore, officials
said, adding that schemes had now been launched to strengthen the khadi institutions and
generate employment, especially in Naxal areas.

PRODUCT LIFECYCLE STAGE

INTRODUCTION STAGE
Introduction of KHADI came during 1920 when GANDHIJI proposed the idea of
SWADESHIMOVEMENT in the Nagpur session of Congress. KHADI according to him
would act as weapon in fighting for our FREEDOM.
GROWTH STAGE
The proposal started taking its growth. The demand for KHADI products started increasing and
demand for FOREIGN products started declining.
MATURITY STAGE
Pre-independence SWADESHI MOVEMENT started taking shape seriously. People totally
preferred KHADIPRODUCTS and avoided FOREIGN goods. The demand for KHADI reached
to its MATURITY level.
DECLINE STAGE
After the independence the demand for KHADI suddenly started declining

REFERENCES
http://msme.gov.in/mob/AboutMSME.aspx
http://delhi.gov.in/wps/wcm/connect/doit_dkvib/DKVIB/Home/About+Us
http://www.fibre2fashion.com/news/textile-news/india/newsdetails.aspx?news_id=166499